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The dollar index is approaching the EMA200 at 104.80 level

The dollar index is approaching the EMA200 at 104.80 level

The dollar index has demonstrated remarkable stability since the beginning of the week, maintaining a position above the 104.50 level.

Dollar Index chart analysis

The dollar index has demonstrated remarkable stability since the beginning of the week, maintaining a position above the 104.50 level. Today, we observe a supportive trend at the EMA50 moving average, further bolstering the bullish pressure and propelling the index to 104.75. In the 104.80 level zone, significant resistance is anticipated at the EMA200 moving average.

If a robust bullish impulse materializes, propelling us above the EMA200, it could serve as a catalyst for substantial growth on the bull side. This support would significantly ease our path, mitigating bearish pressure. Potential higher targets are the 105.00 and 105.20 levels, offering a promising outlook.

The dollar is at a turning point. Do we have a chance to jump over this resistance?

For a bearish option, we anticipate a downside consolidation and pullback to the weekly open price of 104.50. Reaching this level would exert pressure, potentially leading to a further decline and a shift to the bear side. This would mark a new weekly low, confirming our continuation on the bearish side. Potential lower targets are the 104.40 and 104.20 levels, presenting an alternative perspective.

This morning at the Asian session, the news was announced about the RBNZ interest rate, which remained at the same level as before. At the beginning of the EU session, we had data on British inflation. The data were lower than previous ones but higher than expected. Later in the US session, we have existing home sales, crude oil inventories and minutes from the FOMC meeting. We expect an increase in the volatility of the dollar index during the release of this news.

The post The dollar index is approaching the EMA200 at 104.80 level appeared first on FinanceBrokerage.

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